Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning.
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning.
This calculator helps you estimate how prepayment towards your home loan will reduce either your EMI or loan tenure.
Home Loan Prepayment Reduce EMI or Tenure Calculator
Not calculated yet.
Home Loan Prepayment Formula
EMI = P * r * (1 + r)^n / ((1 + r)^n – 1)
Where:
- P: Loan Amount
- r: Monthly Interest Rate
- n: Number of Payments
Formula Source: Investopedia
Related Calculators
What is Home Loan Prepayment?
Prepayment refers to paying off your home loan early, either by paying a lump sum or making extra monthly payments. This reduces the principal amount and helps lower your overall interest burden.
How to Calculate Home Loan Prepayment Impact (Example)
- Step 1: Enter your loan details and prepayment amount.
- Step 2: Click “Calculate” to see the impact on your EMI or loan tenure.
Frequently Asked Questions (FAQ)
Can prepayment reduce my EMI? Yes, prepayment reduces your loan principal, thus lowering your monthly EMI.
Will prepayment always reduce my loan tenure? Not necessarily; it depends on your prepayment amount and whether you choose to reduce EMI or tenure.